Combating crime in the banking sector as a method for ensuring its stability (evidence from Ukraine)

  • Received January 14, 2020;
    Accepted February 12, 2020;
    Published March 25, 2020
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  • Article Info
    Volume 15 2020, Issue #1, pp. 143-157
  • Cited by
    5 articles

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This work is licensed under a Creative Commons Attribution 4.0 International License

An effective system for combating banking crimes can ensure the stability of the Ukrainian banking sector. Developing such a system requires an analysis of public policy institutional instruments to counter threats to the banking system stability. The article proposes the crime counteraction concept for the Ukrainian banking system based on the analysis of scientific articles dealing with the issue, relevant provisions of legal acts and on the study of functions of law enforcement agencies, individual executive bodies, central public authorities, state collegial bodies, territorial NBU departments, Ukrainian banks and their branches, the Deposit Guarantee Fund, international institutions, and bank clients.
It has been established that the stability of the Ukrainian banking system can be ensured by effective interaction of all actors in combating crime in the banking business. Overlapping of their functions and some conflict rules negatively affect ensuring the banking system stability by entities engaged in banking crime counteraction. Therefore, an algorithm of cooperation between relevant counteraction entities should be developed and reflected in the Banking and Financial Security Strategy on the legislative level. Optimization of statistical reporting on crime in the Ukrainian banking sector in a more informative format requires data on both individual types of banking crimes and on the persons who commit them. As part of the work of the National Bank of Ukraine’s Public Council, it is necessary to organize regional public councils and ensure cooperation between bank clients and local banking institutions. It is assumed that the development of effective mechanisms for protecting rights and legitimate interests of depositors and creditors, as well as combating criminalization in the banking sector will be the main functions of these regional public councils. The relevant innovations require amendments to the Regulation on the NBU Public Council.

The article was prepared as part of a project for young scientists of Ukraine in 2017 (state registration number – 0117 U 006531), Improving the Legislation of Ukraine Regarding the Protection of Banking Activities in the Context of European Integration: Economic and Legal Aspect, by Alyona M. Klochko, Ph.D. (Law), Sumy National Agrarian University, Head of the Chair of International Relations.

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    • Figure 1. Banking crime statistics in Ukraine for the period of 2014–2018
    • Figure 2. Entities of combating crime in banking in Ukraine
    • Conceptualization
      Alyona Klochko
    • Formal Analysis
      Alyona Klochko, Oksana Kvasha, Mykola Logvinenko, Mykola Kurylo
    • Funding acquisition
      Alyona Klochko, Zoia Zahynei
    • Investigation
      Alyona Klochko, Oksana Kvasha, Zoia Zahynei, Mykola Kurylo
    • Methodology
      Alyona Klochko
    • Writing – original draft
      Alyona Klochko
    • Resources
      Oksana Kvasha, Mykola Logvinenko
    • Writing – review & editing
      Zoia Zahynei, Mykola Logvinenko, Mykola Kurylo
    • Data curation
      Mykola Logvinenko
    • Project administration
      Mykola Kurylo